How To Choose The Right Business Idea For YouNov 08, 2021
Do you have too many business ideas?
If you are like most entrepreneurs, then you are on that hamster wheel of trying to decide which one of your business ideas is the right one to pursue.
Let’s dive into why it’s important to choose “one” idea, followed by how you can choose the right one for you.
Why You Need to Focus on One Business
People, in general, tend to have the “grass is greener on the other side” mentality. Now throw in those that have an entrepreneurial spirit, and they start to believe that they can “have it” and “do it” all.
For example, let’s say you are working on a new startup, and you notice a demand for a different product or service. You may say to yourself that you can provide a better and more profitable solution. All of a sudden, you now have lost the momentum, passion and interest in your current business.
Many entrepreneurs fall into FOMO (Fear Of Missing Out). They want to be everywhere…and while that competitive spirit is what makes entrepreneurs a rare breed, it’s also what can lead entrepreneurs to fail.
Serial entrepreneurs are always looking to start the next business venture and can run three or four businesses simultaneously. Unfortunately, not everyone has the capability to be a “serial entrepreneur”.
For most entrepreneurs, starting and running multiple businesses simultaneously is counterintuitive. In the early, uncertain stages of your startup, things can get quite hectic and chaotic. There are no guarantees to success, so you’ll need to put in your best efforts. Think of multiplying this chaos three times if you’re planning to manage three startups concurrently.
Therefore, focusing on one business takes away the noise, while allowing you to put all your energy into your startup. You will have less stress, disorganization, overwhelm and burnout by putting your attention to the business at hand. Additionally, the quality of your product or service will be significantly better.
So now you’re stuck with this dilemma: How do you find out which business idea is the right fit for you?
You don’t want to wake up one day realizing you’ve spent years building the wrong things.
How to Choose the Right Business for You
You have numerous business ideas, but you want to decide which one to pursue. The following 7 steps will help you hone in on the business of your choice.
1. Identify Your Skills, Experience, And Passion
It is easier to put up a business built around something you like and enjoy and something you’re good at. By focusing on your skills, experience, and passion, you can sift through your options faster.
If you are passionate about designing clothes, building your clothing line will be an enjoyable and fulfilling feat. If you enjoy developing software, then you’ll shine operating in the SaaS. You will have a higher likelihood of excelling in your business because you are focusing on something you’re already good at and that makes you happy.
2. Validate Customer Demand
Follow your passion, but don’t follow it blindly. If there’s no market need for your skills or products, it can be hard to sustain your business. Look at what people want and what they’re willing to spend their money on.
Identify what the consumers of today need and check how you can provide a solution to their problems. Be the expert who solves these problems, and you’ll see your business grow in time. If you love marketing and you can see that your local businesses have weak digital marketing tactics, sell your expertise and grow their business.
3. Evaluate The Business Based On Your Lifestyle
Ask yourself what kind of life you want to lead. If you don’t set this standard at the onset, your dream business might end up becoming a nightmare. If you prefer to stay at home with the kids, don’t choose a business that will require you to travel far. If you enjoy having your weekends off, don’t go into hospitality.
4. Determine Your Risk Appetite
Entrepreneurship is always going to be risky. However, if you tend to be more risk-averse, then look into businesses that are in your comfort zone. Many first-time business owners start with a franchise because of the support they receive from the franchisor. Just be sure to choose an established franchise with a proven track record.
Another strategy to mitigate risk is to partner up with someone, so that there is shared support, resources, and effort. Again, be sure to choose the right partner where the roles are defined and each partner is on the same page, sharing the same vision and same goal.
5. Flesh Out Your Idea’s Potential
Every entrepreneur believes their idea is the best idea. Unfortunately, the market may not think so. Even if your idea is novel and innovative, it’s always wise to test it. Questions you should ask yourself: Is my idea marketable? Can I afford the startup costs? Can I compete with the existing competitors? Is the market already too saturated? Do I have customers ready and willing to pay for it?
6. Acknowledge Your Financial Limitations
Do you have the capital to finance this business idea? If your idea is putting up a restaurant, but you don’t have the money for it, you might want to reconsider. That’s not to say that you cannot start a business without money, but you should be mindful of your current capital position.
As stated before, entrepreneurship is a risk, and that means your startup can fail. You don’t want to drown in debt because of the large capital requirements of your business.
7. Focus On The Long Term
When determining the right business for you, investigate the longevity of the desired industry. Ask yourself if the industry is growing, declining, or if there are outside factors that can adversely impact it.
Be mindful of businesses that can be considered one-time fads, like the fidget spinner…where you can expect the market demand to drop quickly.
You’ll want a sustainable business. Either your customers will keep buying your products or services, or you evolve your product offerings, so there’s continued demand.
Your Take Away
Sorting through your many amazing business ideas can be a challenge. After all, like every business, this future venture will demand your time, energy, and everything you’ve got to give.
Therefore, it’s imperative that you only select the best business venture that deserves your 100% focus and the one that will give you the most profit and satisfaction. You don’t want to stretch yourself too thin, find yourself in financial stress and end up hating what you do.
Finally, if you are still unsure about your choices, it’s always helpful to talk to another entrepreneur in a similar field or contact a business coach to help you process your options.
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